Two former Parramatta Eels players are accused of harbouring semi-automatic weapons and possessing more than half-a-million dollars in cash after dramatic arrests in Sydney's Centennial Park yesterday.

Business fears coalition parental plan: PM

Prime Minister Julia Gillard has seized on increasing corporate concern about the coalition's plan to increase the company tax rate to fund paid parental leave.

The Business Council of Australia has joined other business groups in querying the coalition's claim that "many" big businesses would benefit from a small tax hike because they could dump their existing paid parental leave schemes.

The scheme primarily would be funded by a 1.5 per cent increase to company tax for the 3200 largest companies, an impost that initially would have been offset by a 1.5 per cent cut in the tax rate for all businesses.

But the coalition has dropped the reduction pledge, saying a final decision will be made after the September 14 election.

"The fear business is focused on today is, the fear of Mr Abbott's plan to finance his paid parental leave scheme by putting up company tax," Ms Gillard told ABC radio on Wednesday.

Business also was concerned about the disruption to the economy should the carbon tax be scrapped in favour of the coalition's "so-called direct action plan".

"Anyone with expertise in the area carbon pollution and security in markets is scoffing at (that)," Ms Gillard said.